According to one small business expert, many Canadian entrepreneurs may be missing out on valuable tax cuts that can end up saving their businesses thousands of dollars every year.
Bob Waterworth of the Financial Post writes that many businesses fail to even consider whether their activities can be classified as research & development, an area in which the government gives tax incentives. He writes that even by spending money to improve technology, many businesses can find themselves eligible for the deduction.
The R&D credits go to companies based in Canada and can cover up to 35 percent of the total costs in the area. Companies based outside of Canada, with headquarters in the country, can receive a 20-percent discount.
Waterworth writes that he has seen small businesses benefit firsthand after taking the time to go after the tax incentive.
"Taking the time to file an R&D tax credit claim helped take a small startup business and its research to the next level, benefiting both the company and a university," Waterworth wrote.
Other sectors of Canada are hoping to get similarly beneficial tax cuts. The Grain Growers of Canada recently advocated a certified seed tax incentive, which would increase investment in cereal breeding.
